Sharp deceleration of apartment sales in Warsaw

Residential sales in Warsaw are currently at levels recorded at the worst point of the pandemic, the second quarter of 2020. Two years ago, 2311 units were sold, while only 511 more were sold during the same period this year, according to data from CBRE and REDNET Property Group. Developers are starting to rebuild their offerings, which are returning to pre-COVID-19 levels. Offer prices are going up a bit, while units put on sale are a bit cheaper. Institutional investors are being targeted by developers. 

"Rising interest rates and the associated declining creditworthiness are strongly evident in the number of units sold. In previous years, an average of about 5,400 units were sold per quarter. In the second quarter of this year, we didn't even break through 3,000 and approached the minimum recorded in the pandemic's weakest three months. Significantly, the price of apartments put on the market has stopped rising, which is related to a certain stabilization of construction costs and awareness of fewer opportunities for buyers. However, the average listing price continues to rise, which is since smaller units are being introduced into the offer, which is popular," Marcin Jański, head of alternative investments at CBRE, said.

(WBJ)